Benefits of Udyam registration for MSMEs | Fusion - WeRIndia

Udyam Registration is an online certification issued by the Indian government. It is designed to support Micro, Small, and Medium Enterprises (MSMEs).

Replacing the previous Udyog Aadhaar Memorandum system, Udyam offers significant advantages.

Thus, it made Udyam a crucial tool for businesses seeking to grow and access government support.

One key benefit of Udyam Registration is that it enables MSMEs to qualify for various government schemes and incentives.

Additionally, the registration process is streamlined, relying solely on self-declaration, meaning businesses don’t need to upload documents or certificates.

Upon successful registration, enterprises receive a unique Udyam Registration Number, providing them with permanent identification. Businesses are also issued an e-certificate, confirming their eligibility for government benefits and financial support.

To qualify for Udyam registration, enterprises must fall within specific investment and turnover limits.

Micro-enterprises are those with investments under ₹1 crore and an annual turnover below ₹5 crore.

Small enterprises require investments below ₹10 crore and turnover under ₹50 crore, while medium enterprises have limits of ₹50 crore in investments and ₹250 crore in turnover.

Various business types are eligible to apply for Udyam Registration. These include proprietorships, partnerships, private limited companies, and LLPs.

As long as the enterprise meets the criteria for MSMEs, it can benefit from this registration.

The advantages of Udyam Registration extend well beyond basic recognition.

Registered MSMEs gain access to government schemes like the Credit Linked Capital Subsidy and Credit Guarantee programs.

They also become eligible for priority sector lending from banks and can access loans at lower interest rates, usually between 1% to 1.5%.

Additionally, Udyam-registered businesses can carry forward Minimum Alternate Tax credits for 15 years, providing long-term tax relief.

The registration also integrates MSMEs with government platforms, streamlining tax compliance and procurement processes.

Udyam Registration serves as a powerful tool for MSMEs, helping them tap into essential financial and regulatory support to fuel growth and innovation.

Image Credit: MSME ministry, CC BY-SA 4.0, via Wikimedia Commons

Source: http://www.dcmsme.gov.in/employ-corner/d/MSME%20logo_1722017.pdf

Image Reference: https://commons.wikimedia.org/wiki/File:MSME_Logo.jpg